Understanding the Energy-Efficient Tax Credits

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The American Recovery and Reinvestment Act of 2009, which was signed into law Feb. 17, 2009, provided improved federal tax credits for certain energy-efficiency products and renewable energy systems. Just make sure the products and systems you consider are eligible. Weather Shield® premium fiberglass-clad wood windows are at the leading edge of energy efficiency, durability and aesthetic appeal with U-factors as low as 0.23, true wood interiors and no-maintenance exteriors. Energy Conservation For those with existing homes, a tax credit of 30 percent is available for qualifying energy-efficiency products. An aggregate $1,500 cap has been set for all qualifying products over the lifetime of the tax credit period of 2009 and 2010. These benefits replace the previous 10 percent tax credit and varying caps on individual improvements. The energy-efficiency standards required of the products has been raised. The Energy Star Web site lists requirements for the windows, doors, insulation, metal and asphalt roofs, heating, ventilating and air conditioning products, non-solar water heaters and biomass stoves that are eligible. In a press release, Greg Miedema, remodelers chairman of the National Association of Home Builders and a remodeler from Tucson, Ariz., notes that “these new tax credits are another way that the home building industry can combat the potential effects of global climate change by encouraging home owners to make energy-efficient improvements to their homes.” The new credits are estimated to generate $6 billion in remodeling work by the end of 2010. Here are a few of the options. For water heaters, those that were installed from Jan. 1, 2009 through Feb. 16, 2009 must have at least a .80 Energy Factor (EF) rating or 90 percent thermal efficiency to qualify. But for those installed since Feb. 17, the water heater must have at least a .82 EF rating or 90 percent thermal efficiency to qualify. “By encouraging the installation of high-efficiency water heaters, the government is addressing a long-term energy conservation challenge while consumers begin to save immediately on their utility bills,” said David Chisolm, water heater brand manager for A. O. Smith water products company based in Ashland City, Tenn. Its Vertex™ and tankless product lines both qualify for the $1,500 tax credit if they are put into service between Jan. 1, 2009 and Dec. 31, 2010. Windows and doors have new criteria to meet, which is even more stringent than current Energy Star specifications. They must achieve a .30 or lower U-factor (a measurement of the rate at which they conduct non-solar heat flow) and .30 or lower Solar Heat Gain Coefficient (SHGC) (the fraction of solar radiation that they admit). “The .30/.30 criteria is stringent and difficult for many manufacturers to meet, but the payoffs for individual homeowners and the country collectively will be significant in terms of energy savings,” says Dave Koester, brand manager for Schield Family Brands. “Our years of investing into the development of energy-efficient products have now been validated. Very few manufacturers can offer the selection that we do.” The company, based in Medford, Wis., includes Weather Shield®, Peachtree®, Visions®, Crestline® and Vetter® brands. Several of its solutions, such as Zo-e-shield energy glass, enable the products to meet or exceed the criteria. The company’s new fiberglass-clad product line delivers U-factors as low as .23.

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